Real estate is one of the best investment options for any portfolio. The stability and capital gains offered by this investment far outweigh most other options. Initially, most people opted for residential property as an investment believing that commercial properties were either too expensive or too complicated.
However, these days the norm is changing. The myriad of benefits offered by commercial properties have drawn the interest of a larger audience. Further, with reputed names such as Ace Realty builder and developer in Thane, commercial real estate investment is far easier. Here, we take a look at some of the top reasons to invest in a commercial real estate project.
Less volatile
Share markets and bank interest rates are highly vulnerable to market fluctuations. With shares, what is at its peak today, may be in the red tomorrow. On the contrary, commercial property is highly stable and does not get impacted by market volatility. This allows for steady value of an investment which appreciates with time but is not at risk of sudden deflation due to a market crash.
Capital Appreciation
Commercial properties rise in value over time leading to generous capital appreciation. Choosing a prominent location and investing at the right time in ongoing projects in Thane can net you massive capital gains in the coming years while setting you up for good rental income.
Substantial Rental Income
Rental income allows for a steady inflow of money while offering an alternate source of income to a job. In the case of real estate properties, commercial investments offer a substantially higher rental income than residential properties. Further, it is easier to hike up rental rates in commercial properties due to changes in market value or inflation.
Long Lease Options
In residential properties, the lease is often for a year at a time. This can make it tiring to constantly find new tenants. On the other hand, commercial property leases can be worked out for a period of 3-5 years allowing for a lot more stability in income and reduced hassle of constant negotiations.
Furnishing Cost Savings
Unlike domestic properties, commercial property owners do not have to furnish the property in any way to generate a substantial rental income. The tenants take up the responsibility of furnishing the space as per their requirements. For instance, the same unfurnished property can be leased to a bank or a retail chain, and they will take up complete responsibility for furnishing the space. In addition, in the case of commercial property investments, the tenants are responsible for property expenses such as taxes and maintenance further saving the owner from expenditure.
Secure Investment
The basic land and property will continue to generate value even if left unoccupied making it a highly secure investment. For long-term gains, always invest in properties helmed by a reputed real estate developer in Thane such as Ace Realty.
Conclusion
Real estate is a highly lucrative option be it residential apartments in Thane or a commercial property venture. However, commercial property investments are expected to grow in value due to an increase in demand and the myriad of benefits they offer.
